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Ken Teale
Ken Teale

1. Performance is calculated on I class shares, post management fees of between 1.50% and 2.25% per annum. 2. The fund underperformed its benchmark over the last quarter primarily due to poor performance of its largest holding, Sempra Energy. 3. The fund adjusted its portfolio during the quarter by reducing exposure to countries with greater sovereign risk issues like Portugal, Spain, and Italy, while increasing positions in Canada and the Netherlands.

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1 Performance is calculated on I class shares, post management fees of between 1.50% and 2.25% per annum 2 Performance inception date is 31 July 2009 3 The UBS Developed Infrastructure & Utilities Index is a USD hedged, total return index IMPORTANT NOTES This report has been prepared for information only, and it does not represent an offer to purchase or subscribe for shares. While Nucleus Global Investors Pty Ltd (Nucleus) believes that the information is correct at the date of production, no warranty or representation is given to this effect and no liability can be assumed for the correctness or accuracy of the given information, which may be subject to change at any time, without notice. Returns can be volatile, reflecting increases and decreases in the value of underlying investments. Changes in market conditions and exchange rates can cause a decrease or an increase in the share value. Past performance does not guarantee the same results in the future. The WIOF Global Listed Utilities Fund (the Fund) is a sub fund of World Investment Opportunities Funds (the SICAV), an open-ended investment company registered on the official list of collective investment undertakings pursuant to part I of the Luxembourg law of 20th December 2002 on collective investment undertakings (the 2002 Law). Julius Baer (Luxembourg) S.A is the designated management company of the SICAV, authorised under the provisions of Chapter 13 of the 2002 Law. Applications can only be made on the form in the current WIOF Prospectus dated April 2010. Prospectus can be obtained by contacting the Nucleus investment team on +61 2 8226 5126, by fax +61 2 9235 2800, or by emailing gfisher@nucleusglobal.com.au or at http://www.wiof.eu/institutional/download/prospectus/. Before investing in the Fund, investors should contact their financial adviser and refer to all relevant documents relating to the Fund, such as the latest annual report and prospectus, which specify the particular risks associated with the Fund, together with any specific restrictions applying, and the basis of dealing. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund is a suitable investment for him. WIOF Global Listed Utilities Fund - March 2010 Performance Summary (total return before fees) Performance 1 1 Month 3 Months 6 Months Inception 2 WIOF Global Listed Utilities Fund 3.1% (0.8)% 6.5% 11.7% Benchmark (UBS Developed Infrastructure & Utilities Index 3 ) 4.1% 0.2% 4.3% 10.9% Sector Allocation Semi Regulated Utility 69% Regulated Utility 19% Ports 3% Generation 3% Communications Infrastructure 5% Airports 1% Geographic Allocation US 55% Europe ex UK 34% UK 6% Canada 5% Overview The unit price decreased by 0.8% over the quarter, compared to a 0.2% increase in the benchmark. Stock selection was the primary factor contributing to our underperformance compared to our benchmark. The major contributor to our underperformance during the quarter was our large holding in Sempra Energy, which, at 5.8% of the portfolio, was the funds largest holding as at the end of March. Sempra is the owner of electricity and gas utilities in California and pipelines and gas storage facilities across the United States. The poor share price performance over the quarter was due to negative sentiment surrounding delays in the sale of some non-core businesses. The Californian utilities businesses earn some of the highest returns on equity of any US utilities and we are comfortable holding a large position in a company which owns some excellent assets but, which we believe, has some of the most competent management of any company within our investment universe. The best performing stocks in the fund over the quarter were SES (the largest Direct-to-Home satellite system operator in Europe) +18.7%, Southern Union (a gas utility with pipelines and gas storage facilities in the southern United States) +12.4% and Atco (a diversified utility with operations primarily in Canada) +10.9%. The worst performing stocks were Enea (an electricity utility in Poland) 12.5%, Public Service Enterprises (an integrated producer and distributor of electricity in the mid Atlantic region of the US) -10.2% and Sempra -10.2%. Portfolio Changes During the quarter, we established positions in Atco, DTE Energy (an electricity and gas utility located in the north eastern United States), Southern Union and Vopak (a global operator of liquid storage facilities at major shipping ports). We exited positions in Electricidade de Portugal, Red Electrica De Espana and Terna, mainly in order to reduce our exposure to Portugal, Spain and Italy, where sovereign risk issues are coming to the fore. Our portfolio re-weightings were driven not only by our desire to take advantage of opportunities to buy attractive companies at significant discounts to value (namely Vopak and Atco), but also a desire to reduce our exposure to countries with greater sovereign risk issues (Portugal, Spain and Italy) and re-invest that capital in countries with higher growth prospects and stronger government finances (Canada and the Netherlands). Company Name Country Sector % of Portfolio Sempra Energy US Semi Regulated Utility 5.8% E.On AG Germany Semi Regulated Utility 5.3% Dominion Resources US Semi Regulated Utility 5.2% Atco Ltd Canada Semi Regulated Utility 4.0% SES Luxembourg Communications Infrastructure 4.0% Top 5 Holdings Outlook Whilst the world economy is clearly in better shape than it was 12 months ago, the events in Greece should be acting as a warning signal to investors about the risks facing some of the peripheral Eurozone economies. Greeces public finances are a shambles, and longer term, some kind of sovereign default or restructuring of Greeces sovereign liabilities seems inevitable, regardless of the actions of the IMF, European Central bank or Eurozone governments. History shows that sovereign defaults or debt restructurings tend to occur in clusters and some kind of contagion effect is highly likely a default or debt restructuring in Greece will most likely lead to similar events in other heavily indebted Eurozone economies with Portugal and Spain two of the more likely candidates. A nations size is no guarantee against sovereign debt difficulties and there could be some surprising casualties in the coming years. It is worth remembering that the United Kingdom received a support package from the IMF in 1976 with a budget deficit significantly lower as a percentage of GDP than it has at present. The rules of finance have not been rewritten, nations to not have a greater debt carrying capacity than they did in the past, even if historically low interest rates makes it appear so. The majority of OECD nations will need to undertake stringent austerity measures in the coming years if they want to avoid Greeces fate. In such an environment, defensive stocks tend to outperform growth stocks. Our portfolio is defensively positioned by virtue of our investment universe, which exhibits earnings which are less dependent on economic conditions than equities generally. Furthermore, the fund has no exposure in Greece, Portugal or Japan and underweight positions in Spain, Italy and the UK.

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  • 1. 1 Performance is calculated on I class shares, post management fees of between 1.50% and 2.25% per annum 2 Performance inception date is 31 July 2009 3 The UBS Developed Infrastructure & Utilities Index is a USD hedged, total return index IMPORTANT NOTES This report has been prepared for information only, and it does not represent an offer to purchase or subscribe for shares. While Nucleus Global Investors Pty Ltd (Nucleus) believes that the information is correct at the date of production, no warranty or representation is given to this effect and no liability can be assumed for the correctness or accuracy of the given information, which may be subject to change at any time, without notice. Returns can be volatile, reflecting increases and decreases in the value of underlying investments. Changes in market conditions and exchange rates can cause a decrease or an increase in the share value. Past performance does not guarantee the same results in the future. The WIOF Global Listed Utilities Fund (the Fund) is a sub fund of World Investment Opportunities Funds (the SICAV), an open-ended investment company registered on the official list of collective investment undertakings pursuant to part I of the Luxembourg law of 20th December 2002 on collective investment undertakings (the 2002 Law). Julius Baer (Luxembourg) S.A is the designated management company of the SICAV, authorised under the provisions of Chapter 13 of the 2002 Law. Applications can only be made on the form in the current WIOF Prospectus dated April 2010. Prospectus can be obtained by contacting the Nucleus investment team on +61 2 8226 5126, by fax +61 2 9235 2800, or by emailing gfisher@nucleusglobal.com.au or at http://www.wiof.eu/institutional/download/prospectus/. Before investing in the Fund, investors should contact their financial adviser and refer to all relevant documents relating to the Fund, such as the latest annual report and prospectus, which specify the particular risks associated with the Fund, together with any specific restrictions applying, and the basis of dealing. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund is a suitable investment for him. WIOF Global Listed Utilities Fund - March 2010 Performance Summary (total return before fees) Performance 1 1 Month 3 Months 6 Months Inception 2 WIOF Global Listed Utilities Fund 3.1% (0.8)% 6.5% 11.7% Benchmark (UBS Developed Infrastructure & Utilities Index 3 ) 4.1% 0.2% 4.3% 10.9% Sector Allocation Semi Regulated Utility 69% Regulated Utility 19% Ports 3% Generation 3% Communications Infrastructure 5% Airports 1% Geographic Allocation US 55% Europe ex UK 34% UK 6% Canada 5% Overview The unit price decreased by 0.8% over the quarter, compared to a 0.2% increase in the benchmark. Stock selection was the primary factor contributing to our underperformance compared to our benchmark. The major contributor to our underperformance during the quarter was our large holding in Sempra Energy, which, at 5.8% of the portfolio, was the funds largest holding as at the end of March. Sempra is the owner of electricity and gas utilities in California and pipelines and gas storage facilities across the United States. The poor share price performance over the quarter was due to negative sentiment surrounding delays in the sale of some non-core businesses. The Californian utilities businesses earn some of the highest returns on equity of any US utilities and we are comfortable holding a large position in a company which owns some excellent assets but, which we believe, has some of the most competent management of any company within our investment universe. The best performing stocks in the fund over the quarter were SES (the largest Direct-to-Home satellite system operator in Europe) +18.7%, Southern Union (a gas utility with pipelines and gas storage facilities in the southern United States) +12.4% and Atco (a diversified utility with operations primarily in Canada) +10.9%. The worst performing stocks were Enea (an electricity utility in Poland) 12.5%, Public Service Enterprises (an integrated producer and distributor of electricity in the mid Atlantic region of the US) -10.2% and Sempra -10.2%. Portfolio Changes During the quarter, we established positions in Atco, DTE Energy (an electricity and gas utility located in the north eastern United States), Southern Union and Vopak (a global operator of liquid storage facilities at major shipping ports). We exited positions in Electricidade de Portugal, Red Electrica De Espana and Terna, mainly in order to reduce our exposure to Portugal, Spain and Italy, where sovereign risk issues are coming to the fore. Our portfolio re-weightings were driven not only by our desire to take advantage of opportunities to buy attractive companies at significant discounts to value (namely Vopak and Atco), but also a desire to reduce our exposure to countries with greater sovereign risk issues (Portugal, Spain and Italy) and re-invest that capital in countries with higher growth prospects and stronger government finances (Canada and the Netherlands). Company Name Country Sector % of Portfolio Sempra Energy US Semi Regulated Utility 5.8% E.On AG Germany Semi Regulated Utility 5.3% Dominion Resources US Semi Regulated Utility 5.2% Atco Ltd Canada Semi Regulated Utility 4.0% SES Luxembourg Communications Infrastructure 4.0% Top 5 Holdings Outlook Whilst the world economy is clearly in better shape than it was 12 months ago, the events in Greece should be acting as a warning signal to investors about the risks facing some of the peripheral Eurozone economies. Greeces public finances are a shambles, and longer term, some kind of sovereign default or restructuring of Greeces sovereign liabilities seems inevitable, regardless of the actions of the IMF, European Central bank or Eurozone governments. History shows that sovereign defaults or debt restructurings tend to occur in clusters and some kind of contagion effect is highly likely a default or debt restructuring in Greece will most likely lead to similar events in other heavily indebted Eurozone economies with Portugal and Spain two of the more likely candidates. A nations size is no guarantee against sovereign debt difficulties and there could be some surprising casualties in the coming years. It is worth remembering that the United Kingdom received a support package from the IMF in 1976 with a budget deficit significantly lower as a percentage of GDP than it has at present. The rules of finance have not been rewritten, nations to not have a greater debt carrying capacity than they did in the past, even if historically low interest rates makes it appear so. The majority of OECD nations will need to undertake stringent austerity measures in the coming years if they want to avoid Greeces fate. In such an environment, defensive stocks tend to outperform growth stocks. Our portfolio is defensively positioned by virtue of our investment universe, which exhibits earnings which are less dependent on economic conditions than equities generally. Furthermore, the fund has no exposure in Greece, Portugal or Japan and underweight positions in Spain, Italy and the UK.